409A Valuation Support
409A Valuations, Coordinated With Your Cap Table and Books
Safe-harbor-compliant 409A reports, ASC 718 stock-based comp expense recorded correctly, and audit-ready documentation — run as one workflow, not three disconnected vendors.
A 409A valuation isn't just a piece of paper. It sets the strike price for every option grant, drives your ASC 718 stock-based comp expense, and shows up under audit scrutiny. Most startups run the 409A through Carta or a similar cap-table platform — which works, but only if someone on the finance side connects it to the books. That's what StartupCFO does.
What We Do
We don't perform the 409A itself (that must be independent). We run the workflow around it, end to end.
- Coordinate 409A refreshes after priced rounds and annually
- Prep the financial information and cap-table snapshots appraisers need
- Review the draft valuation for consistency with your financial model and books
- Record ASC 718 stock-based comp expense using the resulting fair value
- Prepare audit-ready SBC documentation and footnote disclosures
- Coordinate with Carta, Pulley, AngelList, or your preferred 409A provider
When You Need a Fresh 409A
You incorporated
Before issuing any stock options, you need a 409A to establish a defensible strike price.
You closed a priced round
Any priced equity financing is a material event that triggers a 409A refresh.
It's been 12 months
Safe-harbor protection lapses after 12 months without a refreshed valuation. Refresh annually at minimum.
A material event occurred
Major product launches, pivots, revenue inflections, or secondary transactions can all trigger a refresh.
Frequently Asked Questions
What is a 409A valuation?
A 409A valuation is an independent appraisal of the fair market value of your company's common stock. It's required under IRS Section 409A so you can issue stock options with a legally defensible strike price and avoid penalties on the employees receiving them. Most startups need a new 409A every 12 months or after a material event (like a priced round).
When does a startup need a 409A?
As soon as you plan to issue stock options, which for most startups is right after incorporation. You also need a refreshed 409A after every priced equity round, after major financial events, and at least every 12 months to maintain safe-harbor protection.
How much does a 409A valuation cost?
For most early- and mid-stage startups, a 409A costs $1,000–$3,500. Price varies with stage (pre-seed to Series B+), complexity (multi-class cap table, convertible instruments), and provider. Many cap-table platforms bundle 409As into their subscriptions.
Do you perform the 409A yourselves?
No. 409A valuations must be performed by an independent third-party appraiser to qualify for IRS safe harbor. We coordinate the 409A process — prepping the financial information the appraiser needs, reviewing the draft for consistency with your books and model, and recording the resulting ASC 718 expense in your financials. We partner with independent appraisers and cap-table platforms (Carta, Pulley, AngelList) that offer integrated 409A services.
How does 409A connect to stock-based comp accounting (ASC 718)?
The 409A's fair-value conclusion feeds directly into your ASC 718 stock-based comp expense. For every grant, we pull the grant-date fair value from the 409A, apply vesting and forfeiture assumptions, and record the monthly expense on your P&L. When your auditor reviews SBC, they'll look at both the 409A methodology and our ASC 718 application.
Need a 409A Refresh?
Book a call and we'll walk through your 409A status, cap-table hygiene, and stock-based comp accounting in one conversation.
